Home
| Next
| Previous
| Table of Contents
HTML Version Copyright
1995-2000 Daniel B. Evans. All rights reserved.
The Inheritance and Estate Tax Act
(Article XXI of the Tax Reform Code of 1971, Act of
March 4, 1971, P.L. 6, No. 2, added by Act of Aug. 4,
1991, P.L. 97, No. 22, as amended.)
PART VIII
UNIFORM ACT ON INTERSTATE COMPROMISE AND ARBITRATION
OF INHERITANCE TAXES
___This part shall be known and may be cited as the
"Uniform Act on Interstate Compromise and
Arbitration of Inheritance Taxes."
___When the department or the register claims a
decedent was domiciled in this Commonwealth at the time
of his death and the taxing authority of another state
makes a like claim on behalf of its state, the department
may, with the approval of the Attorney General, make a
written agreement of compromise with the other taxing
authority and the executor or administrator of the
decedent that a certain sum shall be accepted in full
satisfaction of any and all inheritance taxes imposed by
this Commonwealth, including any interest or penalties to
the date of signing the agreement. The agreement shall
also fix the amount to be accepted by the other state in
full satisfaction of inheritance taxes. The executor or
administrator of the decedent is authorized to make the
agreement. The agreement shall conclusively fix the
amount of tax payable to the Commonwealth without regard
to any other provision of the laws of this Commonwealth.
Unless the tax agreed upon is paid within sixty days
after the signing of the agreement, interest or penalties
shall accrue upon the amount fixed in the agreement, but
the time between the decedent's death and the signing of
the agreement shall not be included in computing the
interest or penalties. In the event the aggregate amount
payable under the agreement to the states involved is
less than the maximum credit allowable to the estate
against the Federal estate tax imposed with respect to
the estate, the personal representatives shall also pay
to the department so much of the difference between the
aggregate amount and the amount of such credit as the
amount payable to the department under the agreement
bears to the aggregate amount. A copy of the agreement
shall be filed in the office of the proper register, and
any existing appraisement shall be deemed modified
according to the agreement. In the event no appraisement
has been made and filed prior to the agreement, the
department shall direct an appraisement to be made and
filed in the office of the proper register in accordance
with the agreement.
___When the department or the register claims that a
decedent was domiciled in this Commonwealth at the time
of his death and the taxing authority of another state
makes a like claim on behalf of its state, the department
may, with the approval of the Attorney General, make a
written agreement with the other taxing authority and
with the executor or administrator of the decedent to
submit the controversy to the decision of a board
consisting of one or any uneven number of arbitrators.
The executor or administrator of the decedent is
authorized to make the agreement. The parties to the
agreement shall select the arbitrator or arbitrators.
___(a) The board shall have the power to administer
oaths, take testimony, subpoena and require the
attendance of witnesses and the production of books,
papers and documents and issue commissions to take
testimony. Subpoenas may be signed by any member of the
board. In case of failure to obey a subpoena, any judge
of a court of record of this Commonwealth, upon
application by the board, may make an order requiring
compliance with the subpoena, and the court may punish
failure to obey the order as a contempt.
___(b) The board shall hold hearings at a time and
place it may determine, upon reasonable notice to the
parties to the agreement, all of whom shall be entitled
to be heard, to present evidence and to examine and
cross-examine witnesses.
___(c) Except as provided in subsection (a) in
respect to the issuance of subpoenas, all questions
arising in the course of the proceedings shall be
determined by a majority vote of the board.
___(d) The board shall, by a majority vote, determine
the domicile of the decedent at the time of his death.
This determination shall be final for the purpose of
imposing and collecting inheritance taxes but for no
other purpose.
___(e) The compensation and expenses of the members
of the board and its employees may be agreed upon among
the members and the executor or administrator and, if
they cannot agree, shall be fixed by any court having
jurisdiction over probate matters of the State determined
by the board to be the domicile of the decedent. The
amounts so agreed upon or fixed shall be deemed an
administration expense and shall be payable by the
executor or administrator.
___The department, register or board, or the executor
or administrator of the decedent, shall file the
determination of the board as to domicile, the record of
the board's proceedings and the agreement, or a
duplicate, made pursuant to section
2158 with the authority having jurisdiction to assess
or determine the inheritance taxes in the State
determined by the board to be the domicile of the
decedent and shall file copies of the documents with the
authorities that would have been empowered to assess or
determine the inheritance taxes in each of the other
states involved.
___In any case where it is determined by the board
that the decedent died domiciled in this Commonwealth,
interest or penalties, if otherwise imposed by law, for
nonpayment of inheritance taxes between the date of the
agreement and of filing of the determination of the board
as to domicile shall not exceed the rate provided for in
section 2143.
___The provisions of this part shall not prevent at
any time a written compromise, if otherwise lawful, by
all parties to the agreement made pursuant to
section 2157, fixing the amounts
to be accepted by this Commonwealth and any other state
involved in full satisfaction of inheritance taxes.
___The provisions of this part relative to arbitration
shall apply only to cases in which and so far as each of
the states involved has a law identical or substantially
similar to this part.
Home
| Next
| Previous
| Table of Contents
| Top